South Korea's top financial regulator will introduce a cornerstone investor system for initial public offerings to curb the sharp drop in stock prices after IPOs are listed. The Korea Financial Services Commission said that under the new system, which was approved by the government on Tuesday, institutional investors who promise a lockdown period of at least 6 months will be allowed to obtain early share placements. The rule will take effect on November 13 at the same time as the amendments to the Capital Markets Law. Since this year, Korean IPOs have largely disappointed investors: in 2026, the weighted average decline in shares of listed companies reached 32%, far behind the 38% increase in the Korea Composite Stock Price Index.

South Korea's top financial regulator will introduce a cornerstone investor system for initial public offerings to curb the sharp drop in stock prices after IPOs are listed. The Korea Financial Services Commission said that under the new system, which was approved by the government on Tuesday, institutional investors who promise a lockdown period of at least 6 months will be allowed to obtain early share placements. The rule will take effect on November 13 at the same time as the amendments to the Capital Markets Law. Since this year, Korean IPOs have largely disappointed investors: in 2026, the weighted average decline in shares of listed companies reached 32%, far behind the 38% increase in the Korea Composite Stock Price Index.